Second quarter 2007 results 2 Disclaimer All statements in this - PowerPoint PPT Presentation

Oslo, 8 August 2007 Second quarter 2007 results

2 Disclaimer All statements in this presentation other than statements of historical fact are forward-looking statements, which are subject to a number of risks, uncertainties, and assumptions that are difficult to predict and are based upon assumptions as to future events that may not prove accurate. Certain such forward-looking statements can be identified by the use of forward-looking terminology such as “believe”, “may”, “will”, “should”, “would be”, “expect” or “anticipate” or similar expressions, or the negative thereof, or other variations thereof, or comparable terminology, or by discussions of strategy, plans or intentions. Should one or more of these risks or uncertainties materialise, or should underlying assumptions prove incorrect, actual results may vary materially from those described in this presentation as anticipated, believed or expected. Prosafe does not intend, and does not assume any obligation to update any industry information or forward-looking statements set forth in this presentation to reflect subsequent events or circumstances.

3 Agenda The quarter in brief Financial result for 2nd quarter 2007 Business divisions: status, strategy and outlook Summary

4 Q2 2007 in brief New contract awards Excellent operational results FPSO deliveries and conversion projects on schedule Solid financial results Strongly positioned for delivering shareholder value and further growing the company

5 Income statement (Unaudited figures in USD million) Q2 07 Q1 07 Q2 06 H1 07 H1 06 2006 Operating revenues 118.8 88.2 75.3 207.0 150.4 365.6 Operating expenses (54.0) (39.9) (39.8) (93.9) (71.5) (157.9) EBITDA 64.8 48.3 35.5 113.1 78.9 207.7 Depreciation (15.9) (15.3) (12.5) (31.2) (24.3) (57.7) EBIT 48.9 33.0 23.0 81.9 54.6 150.0 Interest income 1.6 1.9 1.3 3.5 2.7 8.5 Interest expenses (13.8) (12.3) (5.4) (26.1) (10.5) (32.1) Other financial items 7.1 (1.9) 13.8 5.2 18.0 16.6 Net financial items (5.1) (12.3) 9.7 (17.4) 10.2 (7.0) Profit before taxes 43.8 20.7 32.7 64.5 64.8 143.0 Taxes 2.4 (4.6) (2.6) (2.2) (4.0) (14.9) Net profit 46.2 16.1 30.1 62.3 60.8 128.1 EPS, basic and diluted (USD) 1) 0.20 0.07 0.21 0.27 0.35 0.64

6 Balance sheet (Unaudited figures in USD million) 30.06.07 31.03.07 31.12.06 30.06.06 Goodwill 355.0 355.0 355.0 348.7 Rigs 760.3 753.8 763.4 780.3 Ships 701.2 631.0 538.7 413.2 Other non-current assets 281.3 271.5 262.4 9.0 Total non-current assets 2 097.8 2 011.3 1 919.5 1 551.2 Cash and deposits 117.6 141.4 147.2 210.9 Other current assets 121.0 64.8 79.2 84.7 Total current assets 238.6 206.2 226.4 295.6 Total assets 2 336.4 2 217.5 2 145.9 1 846.8 Share capital 63.9 63.9 63.9 60.6 Other equity 1 045.9 1 045.5 1 025.8 923.5 Total equity 1 109.8 1 109.4 1 089.7 984.1 Interest-free long-term liabilities 91.6 104.0 101.7 132.2 Interest-bearing long-term debt 862.8 813.8 622.0 495.6 Total long-term liabilities 954.4 917.8 723.7 627.8 Dividends payable 0.0 0.0 147.0 0.0 Other interest-free current liabilities 166.4 158.1 168.6 184.9 Current interest-bearing debt 105.8 32.2 16.9 50.0 Total current liabilities 272.2 190.3 332.5 234.9 Total equity and liabilities 2 336.4 2 217.5 2 145.9 1 846.8

7 Offshore Support Services (Unaudited figures in USD million) Q2 07 Q1 07 Q2 06 H1 07 H1 06 2006 Operating revenues 95.8 66.4 53.0 162.2 104.5 272.6 Operating expenses (43.0) (28.7) (30.0) (71.7) (49.7) (113.6) EBITDA 52.8 37.7 23.0 90.5 54.8 159.0 Depreciation (11.4) (11.3) (8.3) (22.7) (16.7) (41.7) EBIT 41.4 26.4 14.7 67.8 38.1 117.3

8 Floating Production (Unaudited figures in USD million) Q2 07 Q1 07 Q2 06 H1 07 H1 06 2006 Operating revenues 22.9 21.7 22.2 44.6 45.6 92.6 Operating expenses (8.1) (8.5) (9.0) (16.6) (19.6) (39.1) EBITDA 14.8 13.2 13.2 28.0 26.0 53.5 Depreciation (4.4) (3.9) (4.1) (8.3) (7.4) (15.7) EBIT 10.4 9.3 9.1 19.7 18.6 37.8

9 Cash flow (Unaudited figures in USD million) Q2 07 Q1 07 Q2 06 H1 07 H1 06 2006 Operating activities 6.1 42.9 56.4 49.0 167.6 232.8 Investing activities (102.4) (107.1) (717.1) (209.5) (874.3) (1 207.4) Financing activities 72.5 58.4 652.8 130.9 614.0 818.2 Net cash flow (23.8) (5.8) (7.9) (29.6) (92.7) (156.4) Cash at beginning of period 141.4 147.2 218.8 147.2 303.6 303.6 Cash at end of period 117.6 141.4 210.9 117.6 210.9 147.2

10 Key figures Q2 07 Q1 07 Q2 06 H1 07 H1 06 2006 Operating margin 41.2 % 37.4 % 30.5 % 39.6 % 36.3 % 41.0 % Equity ratio 47.5 % 50.0 % 53.3 % 47.5 % 53.3 % 50.8 % Return on equity 16.7 % 8.2 % 16.6 % 11.3 % 17.1 % 16.8 % Return on capital employed 10.0 % 10.0 % 8.2 % 8.6 % 9.6 % 11.6 % Net interest bearing debt 851.0 704.6 334.7 851.0 334.7 491.7

11 Shareholders AS AT 23.07.2007 No. of shares Ownership BW Group 55 932 990 24.3 % 17 742 555 UBS (nom.) 7.7 % Folketrygdfondet 14 252 435 6.2 % Brown Brothers Harriman 12 224 268 5.3 % State Street Bank & Trust (nom.) 7 423 566 3.2 % GMO 5 183 785 2.3 % 4 971 059 JP Morgan Chase Bank (nom.) 2.2 % 3 783 250 Pareto 1.6 % Vital 3 311 171 1.4 % Goldman Sachs (nom.) 3 257 245 1.4 % Total 10 largest shareholders 128 082 324 55.7 % Total no. of shares: 229 936 790 Foreign holding: 78.8 %

12 Offshore Support Services – status Six-month contract for Safe Bristolia on the UKCS Excellent operational performance and high uptime Number of new prospects continues to increase due to: Increasing number of fields Increased offshore maintenance requirements Emerging decommissioning market

13 Offshore Support Services – contract status Safe Astoria Asia Safe Bristolia Safe Esbjerg Safe Caledonia North Sea/ Safe Scandinavia West Africa MSV Regalia Safe Concordia Safe Britannia Safe Lancia Gulf of Mexico Safe Regency Jasminia Safe Hibernia 1Q04 3Q04 1Q05 3Q05 1Q06 3Q06 1Q07 3Q07 1Q08 3Q08 1Q09 3Q09 1Q10 3Q10 1Q11 Contract Option Mobilisation Yard Standby

14 Offshore Support Services – outlook Rig market looks increasingly strong in a long term perspective Increasing dayrates going forward Available rigs will benefit from the increasing dayrates Renewal of the current Mexico contracts Safe Scandinavia High likelihood of higher dayrates and increased earnings in 2008 Strong market position and good assets provide attractive basis for future contracts

15 Floating Production – status Strong underlying performance and high uptime Two-year contract extension of FSO Endeavor 7 + 8 yr FPSO contract for Apache in Australia FPSO Polvo and FPSO Umuroa arrived in field according to schedule Ongoing three conversion projects are progressing according to plan Project management system developed over the last two years has been implemented FPSO Polvo arriving in Rio

16 Floating Production – status (cont) Strong competitive edge based on Unique patented in-house technology Solid project management experience Excellent operational track-record Engineering department expects a high number of variation orders Increased earnings Improved rate of return Possibility for a longer life at the field Fortifying our position as one of the leading players in the FPSO business

17 Floating Production - contract status FPSO Australia Apache, Australia Ł 2023 FPSO Brazil Petrobras, Brazil Ł 2023 LoI Ł 2024 Umuroa NZOP, New Zealand Ł 2017 Polvo Devon, Brazil Ł 2022 Abo Agip, Nigeria Espoir Ivoirien Canadian Natural Resources, Ivory Coast Ł 2022 CNR, Angola Petr. Nautipa (1) Vaalco, Gabon Al Zaafarana (2) � 1994 Zaafarana Oil Comp, Gulf of Suez Endeavor 1997 Aban Offshore, India � Madura Jaya (3) Kodeco Oil, Indonesia 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Project phase Production contract Options Letter of Intent (1) 50% ownership: 5- year term, cancellable from September 2011; (2) Management contract; (3) 50% ownership

18 Status conversion projects: FPSO Cidade de São Mateus for Petrobras, FPSO for undisclosed client (LOI), FPSO for Apache Engineering progressing M/T Navarin according to plan Long lead items have been ordered Target arrival in field: Q4 M/T Europe 2008 Target first oil: early 2009 M/T Kudam

19 Floating Production – outlook Continued high level of bidding activity Well positioned in high growth markets Ambition and capacity to commence: One additional FPSO conversion later this year One additional project FPSO Umuroa within 12 months Strong foundation for continued growth

20 Summary and outlook Strong market positions and international presence Rig market continues to improve and looks increasingly strong in a long term perspective FPSO growth continues at high pace in tight market. Strongly positioned for delivering shareholder value and further growing the company